Not if you are pricing your own labour at a lower cost than it's possible to outsource it. An episode of Big Bang Theory, where Penny makes penny blossoms, illustrates this pretty well: http://www.imdb.com/title/tt1256028/
Anecdotally, this is also a problem that a lot of medium-sized Etsy sellers run into. When their sales scale up, they realize they need to either scale up their operations from something that is more than just one person at a kitchen table making crafts, or they need to spend dozens of hours a week just cranking out their craft projects.
I loved that episode. Way back there was a robotics circuit board called a 'Miniboard' that used a Motorola HC11 and an Hbridge part etc. Some people would get together and organize 'group buys' (kind of like an improvised kickstarter project) where if more than 'n' were bought they could be had for $y. (I believe you can still find some of the emails about these in the archives of comp.sys.robotics) anyway, a couple people who did this got waaaaaaay over their heads, (kitting a few is easy, kitting a few hundred is harder, and kitting a thousand was at the time insanely time consuming for what was essentially no-profit). People were actually sued, sad actually (although I know some Kickstarter projects where the money has vanished and I suspect they are heading for lawsuits too but only time will tell).
That being said, these are some great examples of what you can do with this concept. It is very disruptive. It has never been possible before to have capital so directly influence the creation of a good or service, that is new territory for the economics geeks out there.
